Conventional Gilts
These are the simplest form of UK government bond and make up the largest share of UK government debt (30% as of March 2008). A conventional gilt is a bond issued by the UK government which pays the holder a fixed cash payment (or coupon) every six months until maturity, at which point the holder receives his final coupon payment and the return of the principal.
Read more about this topic: Gilt-edged Securities
Famous quotes containing the word conventional:
“Westminster Abbey is nature crystallized into a conventional form by man, with his sorrows, his joys, his failures, and his seeking for the Great Spirit. It is a frozen requiem, with a nation’s prayer ever in dumb music ascending.”
—M. E. W. Sherwood (1826–1903)